The Consumer Federation of America agreed that the FICO score used by Fannie and Freddie is outdated and amounts to a monopoly on scoring. It supports the lender-choice option, but with constraints. The CFA recommended that lenders be required to pick a provider for a minimum period and said the models used by the two government-sponsored enterprises should align with one another.
Back in July 2017, Fannie revised its automated underwriting system to accept loans with DTI ratios over 45 percent without lenders having to show other compensating factors…